[Federal Register Volume 67, Number 25 (Wednesday, February 6, 2002)]
[Rules and Regulations]
[Pages 5471-5472]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-2624]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 40

[TD 8983]
RIN 1545-BA42


Time for Eligible Air Carriers To File The Third Calendar Quarter 
2001 Form 720

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulations.

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SUMMARY: This document contains final regulations relating to the time 
for eligible air carriers reporting air transportation excise taxes to 
file Form 720, ``Quarterly Federal Excise Tax Return,'' for the third 
calendar quarter of 2001. These regulations affect certain air 
carriers.

DATES: Effective Date: These regulations are effective February 6, 
2002.
    Applicability Date: For date of applicability of these regulations, 
see Sec. 40.6071(a)-3(c).

FOR FURTHER INFORMATION CONTACT: Susan Athy (202) 622-3130 (not a toll-
free number).

SUPPLEMENTARY INFORMATION:

Background

    Subchapter C of chapter 33 of the Internal Revenue Code (Code) 
imposes tax on the amount paid for: taxable transportation by air of 
any person (section 4261(a)); each domestic segment of taxable 
transportation (section 4261(b)); use of international air travel 
facilities (section 4261(c)); and taxable transportation of property by 
air (section 4271(a)) (air transportation excise taxes). Section 6071 
generally provides that return filing dates are prescribed by 
regulation. Under Sec. 40.6071(a)-2, a return of air transportation 
taxes was due by the last day of the second month following the quarter 
for which it was made. On August 8, 2001, the regulations were amended 
to remove this provision but the provision remained in effect for the 
third calendar quarter of 2001. Thus, the return of air transportation 
taxes for that quarter was due on November 30, 2001.
    Under section 6151, generally, tax must be paid at the time the 
return is required to be filed. In general, under section 6601, 
interest must be paid on any amount of tax not paid by the last day for 
payment. Accordingly, if the return due date prescribed in 
Sec. 40.6071(a)-2 remains in effect for the third calendar quarter of 
2001, interest would be imposed on third-quarter air transportation 
excise taxes not paid by November 30, 2001.
    Section 301(a) of the Air Transportation Safety and System 
Stabilization Act (the Act), Public Law 107-42 (115 Stat. 236) provides 
relief to eligible air carriers with respect to the semimonthly 
deposits required for air transportation excise taxes. The relief 
contained in the Act applies to deposits only and does not extend the 
return filing and associated payment date. By extending the filing date 
for eligible air carriers, these final regulations will provide return 
filing, payment, and interest relief consistent with the deposit relief 
provided for air transportation excise taxes by section 301(a) of the 
Act. Notice 2001-77 (2001-50 I.R.B. 576) provided that regulations 
would change the third calendar quarter 2001 filing date.

Explanation of Provisions

    These final regulations change the date by which eligible air 
carriers reporting tax that includes the air transportation excise 
taxes imposed by subchapter C of chapter 33 must file excise tax 
returns for the third quarter of 2001. The due date for these returns 
is postponed from November 30, 2001, to January 15, 2002. For these 
taxpayers, payment of their third-quarter excise tax liability may also 
be delayed until January 15, 2002.

Special Analyses

    This Treasury decision is necessary to provide immediate relief to 
the eligible air carriers affected by the events of September 11, 2001. 
This Treasury decision provides additional time for eligible air 
carriers to file the third calendar quarter 2001 Form 720 and to pay 
certain taxes due with the return. Therefore, it has been determined 
that notice and public comment are unnecessary and contrary to the 
public interest and a delayed effective date under section 553(d) of 
the Administrative Procedure Act (5 U.S.C. chapter 5) is not required. 
Also, it has been determined that section 553(b) of the Administrative 
Procedure Act does not apply to these regulations and, because these 
regulations do not impose on small entities a collection of information 
requirement, the Regulatory Flexibility Act (5 U.S.C. chapter 6) does 
not apply. It also has been determined that this Treasury decision is 
not a significant regulatory action as defined in Executive Order 
12866. Therefore, a regulatory assessment is not required. Pursuant to 
section 7805(f) of the Code, these final regulations were submitted to 
the Chief Counsel for Advocacy of the Small Business Administration for

[[Page 5472]]

comment on their impact on small business.

Drafting Information

    The principal author of these regulations is Susan Athy, Office of 
Associate Chief Counsel (Passthroughs and Special Industries). However, 
other personnel from the IRS and Treasury Department participated in 
their development.

List of Subjects in 26 CFR Part 40

    Excise taxes, Reporting and recordkeeping requirements.

Adoption of Amendments to the Regulations

    Accordingly, 26 CFR part 40 is amended as follows:

PART 40--EXCISE TAX PROCEDURAL REGULATIONS

    Paragraph 1. The authority citation for part 40 is amended by 
adding an entry in numerical order to read in part as follows:

    Authority: 26 U.S.C. 7805 * * *.


    Section 40.6071(a)-3 also issued under 26 U.S.C. 6071(a).* * *
    Par. 2. Section 40.6071(a)-3 is added to read as follows:


Sec. 40.6071(a)-3  Time for an eligible air carrier to file a return 
for the third calendar quarter of 2001.

    (a) In general. If, in the case of an eligible air carrier, the 
quarterly return required under Sec. 40.6011(a)-1(a) for the third 
calendar quarter of 2001 includes tax imposed by subchapter C of 
chapter 33--
    (1) The requirements of Sec. 40.6071(a)-2 as in effect on August 7, 
2001, do not apply to the return; and
    (2) The return must be filed by January 15, 2002.
    (b) Definition of eligible air carrier. Eligible air carrier has 
the same meaning as provided in section 301(a)(2) of the Air 
Transportation Safety and System Stabilization Act; that is, any 
domestic corporation engaged in the trade or business of transporting 
(for hire) persons by air if such transportation is available to the 
general public.
    (c) Effective date. This section is applicable with respect to 
returns that relate to the third calendar quarter of 2001.

    Approved: January 23, 2002.
Robert E. Wenzel,
Deputy Commissioner of Internal Revenue.
Mark Weinberger,
Assistant Secretary of the Treasury.
[FR Doc. 02-2624 Filed 2-5-02; 8:45 am]
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